Medical Liens and Personal Injury Settlements: What You Need to Know

If you've been injured in an accident and are receiving treatment, you may have heard the term "medical lien." A medical lien can affect how much money you take home after your personal injury settlement, and it’s critical to understand how it works.

At McCraw Law Group, we help injury victims across Texas navigate medical liens and protect their right to a fair recovery. Here’s what every injured person should know about medical liens and settlements.

What Is a Medical Lien?

A medical lien is a legal claim filed by a healthcare provider or insurer against your personal injury settlement. It allows them to be repaid for medical services rendered to you while your case is pending.

In other words, if a doctor treats you now, they can place a lien on your future settlement to ensure they get paid once your case resolves.

Who Can File a Medical Lien?

Liens may be filed by:

• Hospitals and emergency rooms
• Health insurance companies
• Medicaid, Medicare, or VA services

These parties can assert a right to recover the costs of treatment out of your settlement funds. In some cases, physicians, specialists, chiropractors, and physical therapists may provide services in exchange for a lien, but they do not have one in Texas unless the patient agrees to it.

Why Do Medical Liens Matter?

Medical liens reduce the amount you ultimately receive in your pocket. If you settle a case for $100,000 but have $30,000 in valid medical liens, you may only receive $70,000 (before attorney fees and case costs).
That’s why it’s essential to:

• Understand which liens exist
• Verify their validity
• Negotiate lien amounts where possible

Your lawyer can help manage this process so your final compensation isn’t unfairly diminished.

Can Medical Liens Be Negotiated?

Yes. In many cases, medical providers are willing to reduce their lien amount—especially when the settlement isn’t large enough to cover all losses.

At McCraw Law Group, we regularly:

• Review lien documentation
• Challenge invalid or inflated charges
• Negotiate reductions
• Ensure our clients take home the maximum possible amount

How Are Liens Paid After a Settlement?

Once your case is resolved, your settlement funds are typically distributed in this order:

1. Attorney’s fees and case expenses
2. Valid medical liens (as agreed or negotiated)
3. Remaining balance to you, the client

Our firm always provides a clear settlement breakdown so you know exactly where every dollar goes.

Should You Be Worried About Medical Liens?

No—but you should be informed. With the right legal guidance, liens can be managed and minimized.

We believe your settlement should reflect your pain, losses, and future care—not just reimburse providers. That’s why our job includes handling liens for you.

Let McCraw Law Group Protect Your Recovery

We do more than fight for compensation—we protect what’s rightfully yours. We’ll:

• Handle all lien communications
• Negotiate lower payments where possible
• Ensure you receive the full value of your case

Free Consultations | No Fee Unless We Win

If you're worried about medical bills and liens, let us help. Contact McCraw Law Group today for a free case evaluation.